Hallelujah, Amen, Allahu Akbar in whichever order you like...
Look, the explanation is written for us in black and white; why are we choosing to create imaginary lines in between and speculate? Here is the link again:
http://www.cic.gc.ca/english/immigrate/skilled/complete-applications.asp
Total complete applications received since June 26, 2010... Applications received toward the overall cap: 2,226 of 20,000 as of October 19, 2010
The statement above could not be clearer, as of October 19 there were 2,226 applications that passed the completeness check and now count towards the cap. By studying the immigration guides, the procedure is spelled out further. When the applications arrive they are checked for completeness, if all the forms are correctly filled out and the application can be considered as complete, then the money is cashed and the application will count towards the cap. Now, the next part is equally important:
Between June 26, 2010, and June 30, 2011, a maximum of 20,000 complete Federal Skilled Worker applications will be considered for processing. Within the 20,000 cap, a maximum of 1,000 Federal Skilled Worker applications per eligible occupation will be considered for processing within this same time frame.
It is written in black and white for us; they are only considering 20,000 complete applications (those that are considered complete and have been successfully cashed) toward the cap. What they are saying here is that once they have 20,000 complete applications they will stop accepting applications (the 1000 NOC caps are also respected)... and whatever number of applications within these fail, they will simply be returned. They are not saying they will give 20,000 PR visas, only that they will accept 20,000 complete applications. No other applicant will replace those applications that fail. After this stage they will go through the eligibility phase explained below... BTW, "considered for processing" means, will go to the eligibility phase and then given to VO.
The next phase, CIO eligibility procedure, is quite simple . They see what NOC code you have applied under and whether your documentation sufficiently meets the requirements for that job. If it does, you pass eligibility.
The thing to remember is that just because you pass eligibility, it does not mean you are home free; far from it. Once the application is given to the visa office, they will assess the remaining criteria, 67 points, IELTS results, reference letters, bank documentation, background checks, etc...until the medical records are submitted. At every stage of this process above one can fail and the application could be returned.
That is my 2cents and I hope I have not offended anyone.